How to Become a Financial Modeller

A career in financial modelling involves creating an abstract representation of a financial situation. A financial model is designed to represent the performance of an investment such as a financial asset which helps a company to discover new market opportunities and predict and quantify risk. This article will provide an informative guide on everything that you need to know about how to become a financial modeller!

What Qualifications Do You Need to Be a Financial Modeller?

Candidates who have a bachelor’s degree in a technical discipline such as engineering or IT and want to carve out a career in finance are well-qualified to go into financial modelling.

Undertaking a financial modelling course will help you to become a pro at Excel, a skill which is paramount for those wanting to have a successful career in finance.

Financial modelling is also relevant for those who are pursuing financial certificates such as CFA (Chartered Financial Analyst).

As a Beginner, Where Should I Start in Financial Modelling?

As a beginner wanting to go into the field of financial modelling, it is important to assess why it is that you want to learn this skill. For those who want to go into corporate finance and money-related decision matters, financial modelling is a sought-after skill that employers highly value.

Enroling in a financial modelling training course is the best way to ensure that you learn the basic skills of financial modelling. There are a number of courses available both for in-class and online study that will undoubtedly give you a leg-up in terms of breaking into this field.

The certified Financial Modeling and Valuation Analyst Certification (FMVA) allows you to discover in-demand industry knowledge, hands-on experience and the confidence to work your way up to becoming a world-class financial analyst.

Skill Set Required for a Financial Modeller

The following modelling skills are required to be successful as a financial modeller:

Excellent problem-solving abilities
Excel, Microsoft and MS Excel skills
Knowledge of accounting and finance

Good time-management abilities
Confident in leading decision-making
A solid understanding of valuation

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What Does a Financial Modeller Do?

In a nutshell, financial modelling combines accounting, finance and business metrics to represent the company in Excel to predict the future of the company’s operations.

There are many types of financial models with various uses, from making business decisions at a company to making investments in a private or public company.

£0,000

Average Salary for a Financial Modeller

Typical Duties for a Financial Modeller

The main tasks that a financial modeller will carry out include:

Building financial models using historical data
Conducting scenario analysis based on macro and micro factors that will help in assessing risk
Identifying key financial and non-financial risks and recommending actions

Carrying out financial analysis by assessing information and transactions such as financial statements and cash flow statements
Updating complex financial models during earning seasons
Working with advanced Excel and balance sheets

Popular Career Pathways for Financial Modellers

There is a wide range of corporate financial jobs that require financial modeling skills.

Investment banking is the most popular financial modeling career as investment bankers regularly use Excel models to value companies for mergers and acquisitions.
Financial analysts perform complex financial modeling and analysis to ensure that the company can plan for the future.
Startup companies need to be able to forecast their expenses, cash flow and company revenue in the future to ensure that the business can survive.

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